Barnett rejects Rudd’s deal on health funding

West Australian Premier
Colin Barnett
stepped up his resistance to the Rudd health plan on Wednesday, declaring that his state could not be bought and it simply would not hand over control of its share of the goods and services tax.

“I made it very clear to the Prime Minister and to the Treasurer that you cannot come over to Western Australia with 20 pieces of silver and expect a deal," Mr Barnett said outside state parliament.

“Strange as it may sound, I will not bargain across issues," he said.

Mr Barnett opposes handing over 30 per cent of the state’s GST to the federal government to help fund the hospitals plan, fearing the states and territories will eventually become dependent on federal funding to the detriment of WA.

“This is state money and we will decide how we spend it," Mr Barnett said.

But the country’s lone Liberal Premier said he would not stand in the way of the other states and territories cementing their deal and he still hoped to reach a special agreement with Prime Minister
Kevin Rudd
by July 1.

“I’m not being a spoiler here," he said. “I will not stand in the way of the other states reaching their agreement with the commonwealth so I would sign off to allow that to happen, but we want an arrangement for Western Australia that suits this state."

Mr Barnett said many senators would have a problem passing the hospital legislation.

“The position taken by this government and this cabinet was the position adopted by [the Council of Australian Governments]."

Over the past two weeks, Ms Keneally ran a very structured campaign with frequent updates and press conferences outlining her position, including a You Tube broadcast outside the negotiating room.

The agreement and its lead-up debate have boosted Ms Keneally’s profile and demonstrated her improved relations with Mr Rudd.

She distanced herself from the hardline approach taken by Victor­ian Premier
John Brumby
.

The NSW opposition questioned the government’s competence in managing the new funds and pointed to the relative absence of Health Minister Carmel Tebbutt during the debate.

Mr Brumby insisted his backflip on the goods and services tax had not opened the door for the commonwealth to access the tax in the future.

“There were very categoric guarantees that were given in relation to that matter," he said.

“The Prime Minister made it very clear that there is no intention now or into the future years, decades – however long the present government is in office – for any further changes to those arrangements.’’

Mr Brumby said the shift in his position was justified based on the concessions the commonwealth offered, such as the retention of the states and territories as managers of the system, the creation of the funding pools and the offer of new money. He said he did not believe Western Australia’s opposition would have an impact on the flow of funds to Victoria

“Every one of those was a tick in the box and in those circumstances the appropriate thing to do was to get the deal,’’ he said.